Homeowner Association

[Reliable1]

I have a new homeowner association client.  I would like to file an 1120-H is there a form in Proseries?

If I end up filing the 1120-S they have been filing is there somewhere I can find verification to be able to take the depreciation on the condominium they all own?  They each are receiving a K-1 now with depreciation weighted by ownership.

The president of the association feels this is not correct, but I can't find where there would be reason not to

Thank you

[jeffmcpa2010]

The HOA owns a condo unit?

[Just-Lisa-Now-]

Doesn't the 1120 form have a box on the front to mark as 1120H ?

I filed one years ago, so I know PS has the ability.

[Just-Lisa-Now- · Accepted solution]

Yep, you dont want the 1120S, use the 1120 and check the box

[Reliable1]

It is a building with 4 condos owned by 4 couples

[jeffmcpa2010]

The couples own the building jointly, or they each own their own condo's?

I'm just trying to understand where depreciation comes in.

[qbteachmt]

"If I end up filing the 1120-S they have been filing"

Say what??!? When you examine this, there would be payroll, shareholders, etc. And it is unusual to hold Real Estate in an S Corp, so are you sure this is not a Property Management operation (as separate from the HOA)?

"but I can't find where there would be reason not to"

You have to know if H is right or if S is right. And this real estate ownership issue matters. Are you sure this isn't a Co-op, not an HOA and condos?

[Reliable1]

They each own individual condo units.  So there wouldn't be depreciation, right! 

I think I am thinking this through correctly now.

[jeffmcpa2010]

Correct: Thought there could be if the HOA had basis in some "common areas, recreation center, etc."

[Reliable1]

Thanks for your help!  All set!